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Appointment details

Appointment type Liquidation
Appointment date 18 June 2014
Appointees Martin Lewis, David Kidman, Tim Mableson
Company subject to Administration Termite Resources NL
ACN 112 036 398
Office Adelaide
Mining ore

KPMG contact

Jacob Versteegh
jversteegh@kpmg.com.au
+61 8 8236 3160

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Background information

The Company operated the Cairn Hill Mine ("Mine") which is a Magnetite-Copper-Gold mine located approximately 55 kilometres south east of Coober Pedy, South Australia.

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Company details

Martin Lewis, David Kidman and Tim Mableson were appointed Joint and Several Voluntary Administrators of Termite Resources NL (In Liquidation) (“the Company”) on 18 June 2014 pursuant to Section 436A of the Corporations Act 2001 (“the Act”). The first meeting of creditors was held on 30 June 2014. In that meeting, the appointment of the Administrators was ratified and a Committee of Creditors was formed.

Pursuant to Section 439A(6) of the Act, on 8 July 2014 the Administrators made an application to the Federal Court of Australia to have the convening period for the Company’s administration extended to 17 September 2014. The reasons for this request are detailed in the Circular to Creditors dated 10 July 2014 which is available below. This request for an extension was granted by the Court on 10 July 2014.

A report pursuant to section 439A(3)(b) of the Act was issued to creditors on 4 September 2014 advising that the Company’s second meeting of creditors was to be held on Monday, 15 September 2014. A copy of this report is available below. At the second meeting, the creditors resolved that the Company be wound up and that the Administrators be appointed the Liquidators. A Committee of Inspection was also formed which largely consisted of the same creditors from the Committee of Creditors.

PCF Capital Group (“PCF”) were engaged by the Liquidators to explore all sale and restructure possibilities for the Mine. As a result of this process, a sale for the Mine has been achieved. We have also completed a separate sale of approximately 49,000 tonnes of iron-copper ore (“Ore”) located at Port Adelaide to a Chinese entity. This sale involved liaising with a number of commodity brokers and engaging a contractor to facilitate the sale.

A dividend to Priority Creditors (i.e. pre-appointment employee entitlements) for 100 cents in the dollar was declared and paid on 9 October 2014. A first and interim dividend to unsecured creditors in the amount of approximately 3 cents in the dollar and was declared and paid on 14 April 2015.

In order to further our investigations into the Company’s affairs, public examinations of the Company’s Directors and other relevant parties were undertaken and completed by June 2015. As a result of our and our solicitor’s investigations into the Company’s affairs, we considered there to be a claim against the Company’s directors and other parties. On the advice of our solicitors and Senior Counsel, proceedings in respect of the claim were commenced in the Federal Court of Australia in April 2016. A trial for the claim was held in the Federal Court of Australia in April 2017 (11 days) and September/October 2017 (7 days).

The evidence resulting from the trial was very favourable and our advisors remain positive about the outcome. The expected timing for the judgement will not be known until April 2018.

Further details of the claim are provided in section 3.2.2.1 of the Liquidators’ Annual Report to Creditors dated 7 December 2017. A copy of this report is available below.

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ASIC insolvency material

The Australian Securities & Investments Commission provides resources on insolvency for directors, practitioners, employees, creditors and investors.

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Support

Coping with the emotional impact of financial distress.

Beyond Blue

beyondblue offers some useful resources for people struggling with the emotional impact of financial distress.

The beyondblue Support Service provides confidential, one-on-one counselling with a trained mental health professional.
Phone: 1300 22 4636

Lifeline

Lifeline offers phone crisis counselling for people who are experiencing financial and emotional hardship.

Phone: 13 11 14 Australia-wide
Online crisis support chat (7:00pm to 4:00am daily)

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